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Industrial Marketing Assignment Help
Industrial marketing is also known as business to business marketing. This marketing involves the marketing of goods and services by one business to another business. In this type of B2B marketing, the services and goods are provided to the businesses instead of providing directly to the customers individually. B2B marketing generally includes the supply and purchase of raw materials, goods and services. Industrial marketing involves the trade of industrial goods. These are the goods which the industry utilizes to produce an end product from one or more raw materials. The B2B marketing is best facilitated with the help of sales representatives. B2B marketing needs variation from client to client which is to be processed and serviced in a customized manner. This type of marketing is less sophisticated. It easily identifies the clients to trade with.
The sole purpose of industrial market is to focus on goods and services provided for the production of a specific separate end product. In this type of marketing, the organization has its own advertising, distributionchannels and own sales. As industrial marketing involves trade of huge amount of products, so it requires highly trained professionals who can monitor the purchase of industrial goods. The marketing is done technically as the representative has to make appointment with the prospective buyer, so that he can understand the needs and come to a solution so that they can provide their services ending up the deal. Industrial market involves the trade of goods and services direct from one business to another instead of trading to a consumer. Industrial market includes three variations which are distinct, 1) businesses selling goods, 2) businesses selling raw materials and 3) businesses selling services. All these distinct variations take place in different individual businesses.
Industrial goods are the products or services which are to be sold for producing other goods or services. These include:
- Manufacturing plants
- Component parts
- Accessory equipment installations
- Component parts
- Maintenance, repair and operation items
- Raw materials
- Fabricating materials.
Industrial market segmentation is the segmentation of industrial market into different groups of customers. These groups are like the other members of the group which mean all the members are like each other dealing in a certain business. As compared to consumer markets, industrial markets offer various types of challenges and opportunities where all the organizations purchase to create their own goods and services by matching and combining the supplier’s capabilities with the desired outcomes to the customers in order to create value for the customers customer and thus resulting in both for the organizations. Industrial market trades with few buyers as compared to consumer markets. An industrial market is comparatively more geographically concentrated so are the industrial buyers too concentrated geographically. These types of markets have to face a lot of derived demands. These markets involve formalized buying processes.
Industrial markets include all organizations, institutions that acquire or purchase the goods/services for the manufacturing, production, resale or any other use rather than using personally. On this basis, industrial markets are divided into three distinct groups.
Producers: These are the major bulk purchasers in business market. These include all the businesses, including profit and non profits, which purchase the goods and services for the manufacturing, construction and assembly activities.
Government Institutions: In government business sector, the products are produced to carry out the operations. Government has to buy goods at mass scale so that it can operate smoothly. For examples, government has to purchase computers on a large scale for its institutions like government offices, hospitals, schools etc. For construction, it has to hire labor etc.
Intermediaries: Intermediaries are the middlemen or resellers market. Middlemen buy the products so that it can resell them for a higher profit. This type of market creates valuable exchange between consumers and producers.
Industrial marketing many times includes the competitive tendering. Competitive tendering is the process in which the organization which makes any purchase undertakes to goods and service procurement from suitable suppliers.
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